Coeure's ECB slip comes under fresh EU scrutiny

ViktoriaDendrinou

(Adds comment from the ECB in seventh paragraph.)

BRUSSELS--Remarks made by a top European Central Bank policymaker to a private audience last week drew fresh scrutiny when a senior European Union official requested more information about the incident.

In a letter addressed to ECB President Mario Draghi dated May 27, the European ombudsman, Emily O'Reilly, asked the ECB to provide further details into an incident where potentially market sensitive information was disclosed to a limited audience. She also requested information on the measures the central bank plans to take to prevent similar instances in the future.

Investors at a select dinner at a five-star London hotel on May 18 were handed a roughly 12-hour head start over the rest of the market when ECB executive board member Benoit Coeure presented them with fresh details of the bank's bond-buying stimulus plan that weren't published until the next morning.

When the ECB made Mr. Coeure's comments public the next morning, the euro tumbled while stocks and bonds soared. The central bank blamed a "procedural error" for the incident.

"I should be grateful if the ECB could provide a more detailed account of the incident in question and in particular of the measures it has taken to avoid a similar incident occurring in the future, so as to enable me to ascertain whether there is any need for action on my part," Ms. O'Reilly said.

"The more detailed account could also help both the Bank and the Ombudsman to respond promptly and effectively to any complaints that may be made about this matter," she added.

"The ECB will respond to the ombudsman and our answer will be public," a spokesman for the central bank said.

The European ombudsman investigates complaints from citizens, businesses and organizations, concerning problems with the administration at EU institutions, bodies and agencies or a possible breach of EU rules. The Ombudsman can make recommendations to the institutions concerned but can't deal with complaints when they are already the subject of court cases.

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